Rupee plunges to new low of 74.27 against USD

On Tuesday, the rupee was trim off all its morning gains to hit a lifetime low of 74.27 against the US dollar in the afternoon trade, as reported by PTI.

As the American currency strengthened overseas, Brent crude oil has breached the $84 a barrel-mark again. It is the international benchmark for crude oil. Traders said that the intensity of foreign fund outflows also weighed on the national currency. Amid weakness in dollar against some currencies overseas, the Rupee opened higher at 73.93 and advanced to 73.88 on fresh selling by exporters.

However, it turned red and nose dived further to trade at a record low of 74.27. The national currency broke previous intra-day record low of 74.23, that it had reached on October 5.

Provisional data showed that Foreign Institutional Investors (FIIs) sold shares of net worth Rs 1,805 crore, on Monday.

The constant rise in sustained foreign capital outflows and increase in crude oil price to 84.48, made investors sceptical.

The domestics currency was weighed down because of rising fiscal deficit and capital outflows, even though there is strong demand for the American currency from importers, said Forex dealers.

Earlier in the day, the domestic stock markets began its business on a positive note. Notably, the BSE Sensex started at 34,651.82 and the Nifty index of the National Stock Exchange (NSE) at 10,390.30.

As soon as the business for the day began, the 30-share Sensex traded at 34,578.35, up 103.97 points or 0.30 percent, and the broader Nifty at 10,391.55, with a gain of 43.50 points or 0.42 percent.

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